Reported 8 months ago
Following the downsizing of over a thousand employees, the American electric car manufacturer Rivian, known as a competitor to Tesla, recently received positive news. Volkswagen agreed to invest $5 billion USD (approximately NT$162.32 billion) to develop software and other related businesses jointly. The announcement led to a strong surge in Rivian's stock price, with an increase of over 50% in after-hours trading, ultimately closing at 49.92%. Volkswagen and Rivian will establish a joint venture using this funding, while also supporting the production line of the smaller SUVs under the car factory. Volkswagen has already injected an initial $1 billion USD and plans to add an additional $4 billion USD by 2026 to further enhance both parties' technology and software. Despite being considered one of Tesla's biggest challengers, Rivian's latest financial report showed higher losses per share than expected by the market, coupled with unfavorable total production estimates for this year, causing a significant drop in their stock price and resulting in a massive layoff of a thousand employees back in February. However, Volkswagen is not the first traditional car manufacturer to invest in Rivian, as General Motors (GM) had previously joined forces with Amazon in 2021 to become one of Rivian's major shareholders, with a 12% stake. The partnership lasted for only two years, with General Motors opting out and abandoning plans for collaborative electric vehicle development.
Source: YAHOO